XRP transaction demand falls 91.5% as traders focus on $0.65 support

XRP network transaction demand has collapsed 91.5%, marking a severe contraction in on-chain activity. The decline reflects both reduced investor participation and mounting losses across the network.

On-chain metrics paint a bleak picture. Network Value to Transactions (NVT) ratio reached extreme levels, indicating that the token's market capitalization massively outpaces actual transactional utility. Simultaneously, the percentage of addresses holding XRP at a loss climbed to record highs, signaling widespread underwater positions among holders.

The technical setup has narrowed considerably. Traders are now anchored to a critical support zone between $1.00 and $0.65. This range represents both psychological resistance and the floor where major liquidations could trigger cascading selling pressure. Breaking below $0.65 opens a path toward lower support levels, while a bounce from current prices requires fresh buying momentum that has yet to materialize.

Volume compression accompanies the demand collapse. Lower transaction throughput means fewer tokens moving across the network daily. This creates a liquidity vacuum where even moderate sell orders can move the price significantly. The lack of organic trading activity suggests holders are trapped rather than actively transacting.

XRP's recent history compounds the pressure. After regulatory clarity initially boosted sentiment, momentum faded as the broader crypto market faced headwinds. The Ripple token lacks the narrative momentum driving other assets higher. Bitcoin's price action dominates capital flows, leaving XRP in the shadow of the flagship asset.

Traders waiting on the sidelines watch for a catalyst. A break above the $1 level with volume confirmation could spark short covering and fresh demand. Conversely, weakness below $0.65 accelerates losses and potentially forces liquidations from leveraged positions.

The severity of these metrics suggests XRP has lost practical utility as a trading vehicle. Transaction demand collapse typically precedes price discoveries lower, though overs